IC 

115TH CONGRESS 

1ST SESSION S. 1595 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 12, 2017 

Referred to the Committee on Foreign Affairs, and in addition to the Committees on the Judiciary, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

AN ACT 

To amend the Hizballah International Financing Prevention 

Act of 2015 to impose additional sanctions with respect 

to Hizballah, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Hizballah International Financing Prevention Amend4 ments Act of 2017’’. 

5 (b) TABLE OF CONTENTS.—The table of contents for 

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—PREVENTION OF ACCESS BY HIZBALLAH TO 

INTERNATIONAL FINANCIAL AND OTHER INSTITUTIONS 

Sec. 101. Mandatory sanctions with respect to fundraising and recruitment activities for Hizballah. 

Sec. 102. Modification of report with respect to financial institutions that engage in certain transactions. 

Sec. 103. Sanctions against agencies and instrumentalities of foreign states 

that support Hizballah. 

TITLE II—NARCOTICS TRAFFICKING AND SIGNIFICANT 

TRANSNATIONAL CRIMINAL ACTIVITIES OF HIZBALLAH 

Sec. 201. Blocking of property of Hizballah. 

Sec. 202. Report on racketeering activities engaged in by Hizballah. 

Sec. 203. Modification of report on activities of foreign governments to disrupt 

global logistics networks and fundraising, financing, and money 

laundering activities of Hizballah. 

Sec. 204. Report on combating the illicit tobacco trafficking networks used by 

Hizballah. 

TITLE III—GENERAL PROVISIONS 

Sec. 301. Regulatory authority. 

Sec. 302. Exceptions. 


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1 TITLE I—PREVENTION OF AC2 CESS BY HIZBALLAH TO 

3 INTERNATIONAL FINANCIAL 

4 AND OTHER INSTITUTIONS 

5 SEC. 101. MANDATORY SANCTIONS WITH RESPECT TO 

6 FUNDRAISING AND RECRUITMENT ACTIVI7 TIES FOR HIZBALLAH. 

8 (a) IN GENERAL.—Section 101 of the Hizballah 

9 International Financing Prevention Act of 2015 (Public 

10 Law 114–102; 50 U.S.C. 1701 note) is amended to read 

11 as follows: 

12 ‘‘SEC. 101. MANDATORY SANCTIONS WITH RESPECT TO 

13 FUNDRAISING AND RECRUITMENT ACTIVI14 TIES FOR HIZBALLAH. 

15 ‘‘(a) IN GENERAL.—The President shall impose the 

16 sanctions described in subsection (b) with respect to any 

17 foreign person that the President determines knowingly 

18 provides significant financial, material, or technological 

19 support for— 

20 ‘‘(1) Bayt al-Mal, Jihad al-Bina, the Islamic 

21 Resistance Support Association, or any successor or 

22 affiliate thereof as designated by the President; 

23 ‘‘(2) al-Manar TV, al Nour Radio, or the Leba24 nese Media Group, or any successor or affiliate 

25 thereof as designated by the President; 


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1 ‘‘(3) a foreign person determined by the Presi2 dent to be engaged in fundraising or recruitment ac3 tivities for Hizballah; or 

4 ‘‘(4) a foreign person owned or controlled by a 

5 foreign person described in paragraph (1), (2), or 

6 (3). 

7 ‘‘(b) SANCTIONS DESCRIBED.— 

8 ‘‘(1) IN GENERAL.—The sanctions described in 

9 this subsection are the following: 

10 ‘‘(A) ASSET BLOCKING.—The exercise of 

11 all powers granted to the President by the 

12 International Emergency Economic Powers Act 

13 (50 U.S.C. 1701 et seq.) (except that the re14 quirements of section 202 of such Act (50 

15 U.S.C. 1701) shall not apply) to the extent nec16 essary to block and prohibit all transactions in 

17 all property and interests in property of a for18 eign person determined by the President to be 

19 subject to subsection (a) if such property and 

20 interests in property are in the United States, 

21 come within the United States, or are or come 

22 within the possession or control of a United 

23 States person. 

24 ‘‘(B) ALIENS INELIGIBLE FOR VISAS, AD25 MISSION, OR PAROLE.— 


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1 ‘‘(i) VISAS, ADMISSION, OR PAROLE.— 

2 An alien who the President determines is 

3 subject to subsection (a) is— 

4 ‘‘(I) inadmissible to the United 

5 States; 

6 ‘‘(II) ineligible to receive a visa 

7 or other documentation to enter the 

8 United States; and 

9 ‘‘(III) otherwise ineligible to be 

10 admitted or paroled into the United 

11 States or to receive any other benefit 

12 under the Immigration and Nation13 ality Act (8 U.S.C. 1101 et seq.). 

14 ‘‘(ii) CURRENT VISAS REVOKED.— 

15 ‘‘(I) IN GENERAL.—The issuing 

16 consular officer, the Secretary of 

17 State, or the Secretary of Homeland 

18 Security shall revoke any visa or other 

19 entry documentation issued to an 

20 alien who the President determines is 

21 subject to subsection (a), regardless of 

22 when issued. 

23 ‘‘(II) EFFECT OF REVOCATION.— 

24 A revocation under subclause (I) shall 

25 take effect immediately and shall 


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1 automatically cancel any other valid 

2 visa or entry documentation that is in 

3 the possession of the alien. 

4 ‘‘(2) PENALTIES.—The penalties provided for 

5 in subsections (b) and (c) of section 206 of the 

6 International Emergency Economic Powers Act (50 

7 U.S.C. 1705) shall apply to a person that violates, 

8 attempts to violate, conspires to violate, or causes a 

9 violation of regulations prescribed under paragraph 

10 (1)(A) to the same extent that such penalties apply 

11 to a person that commits an unlawful act described 

12 in subsection (a) of such section 206. 

13 ‘‘(c) IMPLEMENTATION.—The President may exercise 

14 all authorities provided under sections 203 and 205 of the 

15 International Emergency Economic Powers Act (50 

16 U.S.C. 1702 and 1704) to carry out this section. 

17 ‘‘(d) PROCEDURES FOR JUDICIAL REVIEW OF CLAS18 SIFIED INFORMATION.— 

19 ‘‘(1) IN GENERAL.—If a finding under this sec20 tion, or a prohibition, condition, or penalty imposed 

21 as a result of any such finding, is based on classified 

22 information (as defined in section 1(a) of the Classi23 fied Information Procedures Act (18 U.S.C. App.)) 

24 and a court reviews the finding or the imposition of 

25 the prohibition, condition, or penalty, the President 


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1 may submit such information to the court ex parte 

2 and in camera. 

3 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

4 this subsection shall be construed to confer or imply 

5 any right to judicial review of any finding under this 

6 section or any prohibition, condition, or penalty im7 posed as a result of any such finding. 

8 ‘‘(e) WAIVER.— 

9 ‘‘(1) IN GENERAL.—The President may, for pe10 riods not to exceed 180 days, waive the imposition 

11 of sanctions under this section if the President cer12 tifies to the appropriate congressional committees 

13 that such waiver is in the national security interests 

14 of the United States. 

15 ‘‘(2) BRIEFING.—Not later than 30 days after 

16 the issuance of a waiver under paragraph (1) with 

17 respect to a foreign person, and every 180 days 

18 thereafter while the waiver remains in effect, the 

19 President shall brief the appropriate congressional 

20 committees on the status of the involvement of the 

21 foreign person in activities described in subsection 

22 (a). 

23 ‘‘(f) REPORT.—Not later than 90 days after the date 

24 of the enactment of the Hizballah International Financing 

25 Prevention Amendments Act of 2017, and every 180 days 


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1 thereafter for the following 5 years, the President shall 

2 submit to the appropriate congressional committees a re3 port that lists the foreign persons that the President de4 termines are described in subsection (a). 

5 ‘‘(g) DEFINITIONS.—In this section: 

6 ‘‘(1) ADMITTED; ALIEN.—The terms ‘admitted’ 

7 and ‘alien’ have meanings given those terms in sec8 tion 101 of the Immigration and Nationality Act (8 

9 U.S.C. 1101). 

10 ‘‘(2) APPROPRIATE CONGRESSIONAL COMMIT11 TEES.—The term ‘appropriate congressional com12 mittees’ means— 

13 ‘‘(A) the Committee on Foreign Affairs, 

14 the Committee on Ways and Means, the Com15 mittee on the Judiciary, and the Committee on 

16 Financial Services of the House of Representa17 tives; and 

18 ‘‘(B) the Committee on Foreign Relations, 

19 the Committee on Finance, the Committee on 

20 Banking, Housing, and Urban Affairs, and the 

21 Committee on the Judiciary of the Senate. 

22 ‘‘(3) ENTITY.—The term ‘entity’ means a part23 nership, association, corporation, or other organiza24 tion, group, or subgroup. 


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1 ‘‘(4) HIZBALLAH.—The term ‘Hizballah’ has 

2 the meaning given such term in section 102(f). 

3 ‘‘(5) PERSON.—The term ‘person’ means an in4 dividual or entity. 

5 ‘‘(6) UNITED STATES PERSON.—The term 

6 ‘United States person’ means a United States cit7 izen, permanent resident alien, entity organized 

8 under the laws of the United States (including for9 eign branches), or a person in the United States.’’. 

10 (b) CLERICAL AMENDMENT.—The table of contents 

11 for the Hizballah International Financing Prevention Act 

12 of 2015 is amended by striking the item relating to section 

13 101 and inserting the following new item: 

‘‘Sec. 101. Mandatory sanctions with respect to fundraising and recruitment 

activities for Hizballah.’’. 

14 SEC. 102. MODIFICATION OF REPORT WITH RESPECT TO FI15 NANCIAL INSTITUTIONS THAT ENGAGE IN 

16 CERTAIN TRANSACTIONS. 

17 Subsection (d) of section 102 of the Hizballah Inter18 national Financing Prevention Act of 2015 (Public Law 

19 114–102; 50 U.S.C. 1701 note) is amended to read as 

20 follows: 

21 ‘‘(d) REPORT ON FINANCIAL INSTITUTIONS ORGA22 NIZED UNDER THE LAWS OF STATE SPONSORS OF TER23 RORISM.— 


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1 ‘‘(1) IN GENERAL.—Not later than 90 days 

2 after the date of the enactment of the Hizballah 

3 International Financing Prevention Amendments 

4 Act of 2017, and every 180 days thereafter for the 

5 following 5 years, the President shall submit to the 

6 appropriate congressional committees a report 

7 that— 

8 ‘‘(A) identifies each foreign financial insti9 tution described in paragraph (2) that the 

10 President determines engages in one or more 

11 activities described in subsection (a)(2); 

12 ‘‘(B) provides a detailed description of 

13 each such activity; and 

14 ‘‘(C) contains a determination with respect 

15 to each such foreign financial institution that is 

16 identified under subparagraph (A) as engaging 

17 in one or more activities described in subsection 

18 (a)(2) as to whether such foreign financial in19 stitution is in violation of Executive Order 

20 13224 (50 U.S.C. 1701 note; relating to block21 ing property and prohibiting transactions with 

22 persons who commit, threaten to commit, or 

23 support terrorism) by reason of engaging in one 

24 or more such activities. 


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1 ‘‘(2) FOREIGN FINANCIAL INSTITUTION DE2 SCRIBED.— 

3 ‘‘(A) IN GENERAL.—A foreign financial in4 stitution described in this paragraph is a for5 eign financial institution— 

6 ‘‘(i) that, wherever located, is— 

7 ‘‘(I) organized under the laws of 

8 a state sponsor of terrorism or any ju9 risdiction within a state sponsor of 

10 terrorism; 

11 ‘‘(II) owned or controlled by the 

12 government of a state sponsor of ter13 rorism; 

14 ‘‘(III) located in the territory of 

15 a state sponsor of terrorism; or 

16 ‘‘(IV) owned or controlled by a 

17 foreign financial institution described 

18 in subclause (I), (II), or (III); and 

19 ‘‘(ii) the capitalization of which ex20 ceeds $10,000,000. 

21 ‘‘(B) STATE SPONSOR OF TERRORISM.—In 

22 this paragraph, the term ‘state sponsor of ter23 rorism’ means a country the government of 

24 which the Secretary of State has determined is 

25 a government that has repeatedly provided supVerDate Sep 11 2014 00:10 Oct 13, 2017 Jkt 079200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1595.RFH S1595

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1 port for acts of international terrorism for pur2 poses of— 

3 ‘‘(i) section 6(j) of the Export Admin4 istration Act of 1979 (50 U.S.C. 4605(j)) 

5 (as continued in effect pursuant to the 

6 International Emergency Economic Powers 

7 Act (50 U.S.C. 1701 et seq.)); 

8 ‘‘(ii) section 620A of the Foreign As9 sistance Act of 1961 (22 U.S.C. 2371); 

10 ‘‘(iii) section 40 of the Arms Export 

11 Control Act (22 U.S.C. 2780); or 

12 ‘‘(iv) any other provision of law.’’. 

13 SEC. 103. SANCTIONS AGAINST AGENCIES AND INSTRUMEN14 TALITIES OF FOREIGN STATES THAT SUP15 PORT HIZBALLAH. 

16 (a) IN GENERAL.—Title I of the Hizballah Inter17 national Financing Prevention Act of 2015 (Public Law 

18 114–102; 50 U.S.C. 1701 note) is amended by adding at 

19 the end the following: 

20 ‘‘SEC. 103. SANCTIONS AGAINST AGENCIES AND INSTRU21 MENTALITIES OF FOREIGN STATES THAT 

22 SUPPORT HIZBALLAH. 

23 ‘‘(a) IN GENERAL.—Not later than 180 days after 

24 the date of the enactment of this section, and as appro25 priate thereafter, the President shall block and prohibit 


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1 all transactions in all property and interests in property 

2 of any agency or instrumentality of a foreign state de3 scribed in subsection (b) if such property and interests in 

4 property are in the United States, come within the United 

5 States, or are or come within the possession or control 

6 of a United States person. 

7 ‘‘(b) AGENCY OR INSTRUMENTALITY OF A FOREIGN

8 STATE DESCRIBED.—An agency or instrumentality of a 

9 foreign state described in this subsection is an agency or 

10 instrumentality of a foreign state that the President deter11 mines knowingly provides significant financial, material, 

12 or technological support for, goods or services to or in sup13 port of, or arms or related material to— 

14 ‘‘(1) Hizballah; 

15 ‘‘(2) an entity owned or controlled by Hizballah; 

16 or 

17 ‘‘(3) an entity that the President determines 

18 has acted for or on behalf of Hizballah. 

19 ‘‘(c) PENALTIES.—The penalties provided for in sub20 sections (b) and (c) of section 206 of the International 

21 Emergency Economic Powers Act (50 U.S.C. 1705) shall 

22 apply to a person that violates, attempts to violate, con23 spires to violate, or causes a violation of regulations pre24 scribed under subsection (a) to the same extent that such 


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1 penalties apply to a person that commits an unlawful act 

2 described in subsection (a) of such section 206. 

3 ‘‘(d) IMPLEMENTATION.—The President may exer4 cise all authorities provided under sections 203 and 205 

5 of the International Emergency Economic Powers Act (50 

6 U.S.C. 1702 and 1704) to carry out this section. 

7 ‘‘(e) PROCEDURES FOR JUDICIAL REVIEW OF CLAS8 SIFIED INFORMATION.— 

9 ‘‘(1) IN GENERAL.—If a finding under this sec10 tion, or a prohibition, condition, or penalty imposed 

11 as a result of any such finding, is based on classified 

12 information (as defined in section 1(a) of the Classi13 fied Information Procedures Act (18 U.S.C. App.)) 

14 and a court reviews the finding or the imposition of 

15 the prohibition, condition, or penalty, the President 

16 may submit such information to the court ex parte 

17 and in camera. 

18 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

19 this subsection shall be construed to confer or imply 

20 any right to judicial review of any finding under this 

21 section or any prohibition, condition, or penalty im22 posed as a result of any such finding. 

23 ‘‘(f) WAIVER.— 

24 ‘‘(1) IN GENERAL.—The President may, for pe25 riods not to exceed 180 days, waive the imposition 


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1 of sanctions under this section with respect to an 

2 agency or instrumentality of a foreign state if the 

3 President certifies to the appropriate congressional 

4 committees that such waiver is in the national secu5 rity interests of the United States. 

6 ‘‘(2) BRIEFING.—Not later than 30 days after 

7 the issuance of a waiver under paragraph (1) with 

8 respect to an agency or instrumentality of a foreign 

9 state, and every 180 days thereafter while the waiver 

10 remains in effect, the President shall brief the ap11 propriate congressional committees on the status of 

12 the involvement of the agency or instrumentality in 

13 activities described in subsection (b). 

14 ‘‘(g) DEFINITIONS.—In this section: 

15 ‘‘(1) AGENCY OR INSTRUMENTALITY OF A FOR16 EIGN STATE; FOREIGN STATE.—The terms ‘agency 

17 or instrumentality of a foreign state’ and ‘foreign 

18 state’ have the meanings given those terms in sec19 tion 1603 of title 28, United States Code. 

20 ‘‘(2) APPROPRIATE CONGRESSIONAL COMMIT21 TEES.—The term ‘appropriate congressional com22 mittees’ means— 

23 ‘‘(A) the Committee on Foreign Affairs, 

24 the Committee on Financial Services, the Com25 mittee on Ways and Means, and the Committee 


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1 on the Judiciary of the House of Representa2 tives; and 

3 ‘‘(B) the Committee on Foreign Relations, 

4 the Committee on Banking, Housing, and 

5 Urban Affairs, and the Committee on the Judi6 ciary of the Senate. 

7 ‘‘(3) ARMS OR RELATED MATERIAL.—The term 

8 ‘arms or related material’ means— 

9 ‘‘(A) nuclear, biological, chemical, or radio10 logical weapons or materials or components of 

11 such weapons; 

12 ‘‘(B) ballistic or cruise missile weapons or 

13 materials or components of such weapons; 

14 ‘‘(C) destabilizing numbers and types of 

15 advanced conventional weapons; 

16 ‘‘(D) defense articles or defense services, 

17 as those terms are defined in paragraphs (3) 

18 and (4), respectively, of section 47 of the Arms 

19 Export Control Act (22 U.S.C. 2794); 

20 ‘‘(E) defense information, as that term is 

21 defined in section 644 of the Foreign Assist22 ance Act of 1961 (22 U.S.C. 2403); or 

23 ‘‘(F) items designated by the President for 

24 purposes of the United States Munitions List 


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1 under section 38(a)(1) of the Arms Export 

2 Control Act (22 U.S.C. 2778(a)(1)). 

3 ‘‘(4) HIZBALLAH.—The term ‘Hizballah’ has 

4 the meaning given that term in section 102(f).’’. 

5 (b) CLERICAL AMENDMENT.—The table of contents 

6 for the Hizballah International Financing Prevention Act 

7 of 2015 is amended by inserting after the item relating 

8 to section 102 the following new item: 

‘‘Sec. 103. Sanctions against agencies and instrumentalities of foreign states 

that support Hizballah.’’. 

9 TITLE II—NARCOTICS TRAF10 FICKING AND SIGNIFICANT 

11 TRANSNATIONAL CRIMINAL 

12 ACTIVITIES OF HIZBALLAH 

13 SEC. 201. BLOCKING OF PROPERTY OF HIZBALLAH. 

14 (a) IN GENERAL.—Section 201 of the Hizballah 

15 International Financing Prevention Act of 2015 (Public 

16 Law 114–102; 50 U.S.C. 1701 note) is amended to read 

17 as follows: 

18 ‘‘SEC. 201. BLOCKING OF PROPERTY OF HIZBALLAH. 

19 ‘‘(a) FINDINGS.—Congress finds that Hizballah con20 ducts narcotics trafficking and significant transnational 

21 criminal activities. 

22 ‘‘(b) BLOCKING OF PROPERTY.—Not later than 180 

23 days after the date of the enactment of the Hizballah 

24 International Financing Prevention Amendments Act of 


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1 2017, and as appropriate thereafter, the President shall 

2 block and prohibit all transactions in all property and in3 terests in property of Hizballah if such property and inter4 ests in property are in the United States, come within the 

5 United States, or are or come within the possession or 

6 control of a United States person. 

7 ‘‘(c) PENALTIES.—The penalties provided for in sub8 sections (b) and (c) of section 206 of the International 

9 Emergency Economic Powers Act (50 U.S.C. 1705) shall 

10 apply to a person that violates, attempts to violate, con11 spires to violate, or causes a violation of regulations pre12 scribed under subsection (b) to the same extent that such 

13 penalties apply to a person that commits an unlawful act 

14 described in subsection (a) of such section 206. 

15 ‘‘(d) IMPLEMENTATION.—The President may exer16 cise all authorities provided under sections 203 and 205 

17 of the International Emergency Economic Powers Act (50 

18 U.S.C. 1702 and 1704) to carry out this section. 

19 ‘‘(e) PROCEDURES FOR JUDICIAL REVIEW OF CLAS20 SIFIED INFORMATION.— 

21 ‘‘(1) IN GENERAL.—If a finding under this sec22 tion, or a prohibition, condition, or penalty imposed 

23 as a result of any such finding, is based on classified 

24 information (as defined in section 1(a) of the Classi25 fied Information Procedures Act (18 U.S.C. App.)) 


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1 and a court reviews the finding or the imposition of 

2 the prohibition, condition, or penalty, the President 

3 may submit such information to the court ex parte 

4 and in camera. 

5 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

6 this subsection shall be construed to confer or imply 

7 any right to judicial review of any finding under this 

8 section or any prohibition, condition, or penalty im9 posed as a result of any such finding. 

10 ‘‘(f) WAIVER.—The President may, for periods not 

11 to exceed 180 days, waive the imposition of sanctions 

12 under this section if the President certifies to the appro13 priate congressional committees that such waiver is in the 

14 national security interests of the United States. 

15 ‘‘(g) DEFINITION.—In this section, the term 

16 ‘Hizballah’ has the meaning given that term in section 

17 102(f).’’. 

18 (b) CLERICAL AMENDMENTS.—The table of contents 

19 for the Hizballah International Financing Prevention Act 

20 of 2015 is amended— 


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1 (1) by striking the item relating to title II and 

2 inserting the following: 

‘‘TITLE II—IMPOSITION OF SANCTIONS WITH RESPECT TO 

HIZBALLAH AND REPORTS RELATING TO NARCOTICS TRAFFICKING AND SIGNIFICANT TRANSNATIONAL CRIMINAL ACTIVITIES OF HIZBALLAH.’’; AND

3 (2) by striking the item relating to section 201 

4 and inserting the following: 

‘‘Sec. 201. Blocking of property of Hizballah.’’. 

5 SEC. 202. REPORT ON RACKETEERING ACTIVITIES EN6 GAGED IN BY HIZBALLAH. 

7 (a) IN GENERAL.—Section 202 of the Hizballah 

8 International Financing Prevention Act of 2015 (Public 

9 Law 114–102; 50 U.S.C. 1701 note) is amended to read 

10 as follows: 

11 ‘‘SEC. 202. REPORT ON RACKETEERING ACTIVITIES EN12 GAGED IN BY HIZBALLAH. 

13 ‘‘(a) IN GENERAL.—Not later than 180 days after 

14 the date of the enactment of the Hizballah International 

15 Financing Prevention Amendments Act of 2017, and an16 nually thereafter for the following 5 years, the President 

17 shall submit to the appropriate congressional committees 

18 a report on the following: 

19 ‘‘(1) Activities that Hizballah, and agents and 

20 affiliates of Hizballah, have engaged in that are 

21 racketeering activities. 


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1 ‘‘(2) The extent to which Hizballah, and agents 

2 and affiliates of Hizballah, engage in a pattern of 

3 such racketeering activities. 

4 ‘‘(b) FORM OF REPORT.—Each report required under 

5 subsection (a) shall be submitted in an unclassified form 

6 but may contain a classified annex. 

7 ‘‘(c) DEFINITIONS.—In this section: 

8 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT9 TEES.—The term ‘appropriate congressional com10 mittees’ means— 

11 ‘‘(A) the Committee on the Judiciary, the 

12 Committee on Foreign Affairs, and the Com13 mittee on Financial Services of the House of 

14 Representatives; and 

15 ‘‘(B) the Committee on the Judiciary, the 

16 Committee on Foreign Relations, and the Com17 mittee on Banking, Housing, and Urban Affairs 

18 of the Senate. 

19 ‘‘(2) HIZBALLAH.—The term ‘Hizballah’ has 

20 the meaning given that term in section 102(f). 

21 ‘‘(3) RACKETEERING ACTIVITY.—The term 

22 ‘racketeering activity’ has the meaning given that 

23 term in section 1961(1) of title 18, United States 

24 Code.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of contents 

2 for the Hizballah International Financing Prevention Act 

3 of 2015 is amended by striking the item relating to section 

4 202 and inserting the following: 

‘‘Sec. 202. Report on racketeering activities engaged in by Hizballah.’’. 

5 SEC. 203. MODIFICATION OF REPORT ON ACTIVITIES OF 

6 FOREIGN GOVERNMENTS TO DISRUPT GLOB7 AL LOGISTICS NETWORKS AND FUND8 RAISING, FINANCING, AND MONEY LAUN9 DERING ACTIVITIES OF HIZBALLAH. 

10 (a) IN GENERAL.—Section 204 of the Hizballah 

11 International Financing Prevention Act of 2015 (Public 

12 Law 114–102; 50 U.S.C. 1701 note) is amended— 

13 (1) in subsection (a)(1)— 

14 (A) in the matter preceding subparagraph 

15 (A), by striking ‘‘this Act’’ and inserting ‘‘the 

16 Hizballah International Financing Prevention 

17 Amendments Act of 2017, and annually there18 after for the following 5 years’’; 

19 (B) in subparagraph (D)(ii)(II), by strik20 ing ‘‘and’’ at the end; 

21 (C) in subparagraph (E), by striking ‘‘and 

22 free-trade zones.’’ and inserting ‘‘free-trade 

23 zones, business partnerships and joint ventures, 

24 and other investments in small and medium25 sized enterprises;’’; and 


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1 (D) by adding at the end the following: 

2 ‘‘(F) a list of jurisdictions outside of Leb3 anon that expressly consent to, or with knowl4 edge allow, the use of their territory by 

5 Hizballah to carry out terrorist activities, in6 cluding training, financing, and recruitment; 

7 ‘‘(G) a description of the total aggregate 

8 revenues and remittances that Hizballah re9 ceives from the global logistics networks of 

10 Hizballah.’’; 

11 (2) by redesignating subsections (b) and (c) as 

12 subsections (c) and (d), respectively; 

13 (3) by inserting after subsection (a) the fol14 lowing: 

15 ‘‘(b) ENHANCED DUE DILIGENCE.— 

16 ‘‘(1) IN GENERAL.—The President shall pre17 scribe, as necessary, enhanced due diligence policies, 

18 procedures, and controls for United States financial 

19 institutions, and foreign financial institutions main20 taining correspondent accounts or payable-through 

21 accounts with United States financial institutions, 

22 that the President determines provide significant fi23 nancial services for persons and entities operating in 

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1 ports to the appropriate congressional committees 

2 that it is in the national security interest of the 

3 United States to do so. 

4 ‘‘(2) DEFINITIONS.—In this subsection, the 

5 terms ‘correspondent account’ and ‘payable-through 

6 account’ have the meanings given those terms in sec7 tion 5318A of title 31, United States Code.’’; and 

8 (4) in subsection (c), as redesignated by para9 graph (2) by adding before the period at the end the 

10 following: ‘‘and on any requirements for enhanced 

11 due diligence prescribed under subsection (b)’’. 

12 (b) REPORT ON ESTIMATED NET WORTH OF SENIOR

13 HIZBALLAH MEMBERS.— 

14 (1) IN GENERAL.—Not later than 180 days 

15 after the date of the enactment of this Act, and not 

16 less frequently than annually thereafter for the fol17 lowing 2 years, the President shall submit to the ap18 propriate congressional committees a report that 

19 contains— 

20 (A) the estimated total net worth of each 

21 individual described in paragraph (2); and 

22 (B) a description of how funds of each in23 dividual described in paragraph (2) were ac24 quired, and how such funds have been used or 

25 employed. 


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1 (2) INDIVIDUALS DESCRIBED.—The individuals 

2 described in this paragraph are the following: 

3 (A) The Secretary General of Hizballah. 

4 (B) Any other individual that the Presi5 dent determines is a senior foreign political fig6 ure of Hizballah. 

7 (3) FORM OF REPORT; PUBLIC AVAILABILITY.— 

8 (A) FORM.—The report required under 

9 paragraph (1) shall be submitted in unclassified 

10 form but may contain a classified annex. 

11 (B) PUBLIC AVAILABILITY.—The unclassi12 fied portion of the report required under para13 graph (1) shall be made available to the public 

14 in precompressed, easily downloadable versions 

15 that are made available in all appropriate for16 mats. 

17 (4) SOURCES OF INFORMATION.—In preparing 

18 the report required under paragraph (1), the Presi19 dent may use any credible publication, database, or 

20 web-based resource, and any credible information 

21 compiled by any government agency, nongovern22 mental organization, or other entity provided to or 

23 made available to the President. 

24 (5) DEFINITIONS.—In this subsection: 


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1 (A) APPROPRIATE CONGRESSIONAL COM2 MITTEES.—The term ‘‘appropriate congres3 sional committees’’ means— 

4 (i) the Committee on Foreign Affairs 

5 and the Committee on Financial Services 

6 of the House of Representatives; and 

7 (ii) the Committee on Foreign Rela8 tions and the Committee on Banking, 

9 Housing, and Urban Affairs of the Senate. 

10 (B) FUNDS.—The term ‘‘funds’’ means— 

11 (i) cash; 

12 (ii) equity; 

13 (iii) any other intangible asset the 

14 value of which is derived from a contrac15 tual claim, including bank deposits, bonds, 

16 stocks, a security (as defined in section 

17 2(a) of the Securities Act of 1933 (15 

18 U.S.C. 77b(a))), or a security or an equity 

19 security (as those terms are defined in sec20 tion 3(a) of the Securities Exchange Act of 

21 1934 (15 U.S.C. 78c(a))); and 

22 (iv) anything else of value that the 

23 Secretary of the Treasury determines to be 

24 appropriate. 


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1 (C) SENIOR FOREIGN POLITICAL FIG2 URE.—The term ‘‘senior foreign political fig3 ure’’ has the meaning given that term in section 

4 1010.605 of title 31, Code of Federal Regula5 tions (or any successor regulation). 

6 SEC. 204. REPORT ON COMBATING THE ILLICIT TOBACCO 

7 TRAFFICKING NETWORKS USED BY 

8 HIZBALLAH. 

9 (a) IN GENERAL.—Not later than 180 days after the 

10 date of the enactment of this Act, the President shall sub11 mit to the appropriate congressional committees a report 

12 on combating the illicit tobacco trafficking networks used 

13 by Hizballah to finance their operations, as described in 

14 the report submitted to Congress in December 2015 by 

15 the Department of State, the Department of Justice, the 

16 Department of the Treasury, the Department of Home17 land Security, and the Department of Health and Human 

18 Services entitled, ‘‘The Global Illicit Trade in Tobacco: A 

19 Threat to National Security.’’. 

20 (b) MATTERS TO BE ADDRESSED.—The report re21 quired by subsection (a) shall include the following: 

22 (1) A description of the steps to be taken by 

23 Federal agencies to combat the illicit tobacco traf24 ficking networks used by Hizballah. 


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1 (2) A description of the steps to be taken to en2 gage State and local law enforcement authorities in 

3 efforts to combat illicit tobacco trafficking networks 

4 used by Hizballah operating within the United 

5 States. 

6 (3) A description of the steps to be taken to en7 gage foreign government law enforcement and intel8 ligence authorities in efforts to combat illicit tobacco 

9 trafficking networks used by Hizballah operating 

10 outside the United States. 

11 (4) Recommendations for legislative or adminis12 trative action, as appropriate, to address the threat 

13 of illicit tobacco trafficking networks. 

14 (c) APPROPRIATE CONGRESSIONAL COMMITTEES DE15 FINED.—In this section, the term ‘‘appropriate congres16 sional committees’’ means— 

17 (1) the Committee on Foreign Affairs, the 

18 Committee on Armed Services, the Committee on 

19 Homeland Security, the Committee on the Judiciary, 

20 the Committee on Financial Services, and the Com21 mittee on Ways and Means of the House of Rep22 resentatives; and 

23 (2) the Committee on Foreign Relations, the 

24 Committee on Armed Services, the Committee on 

25 Homeland Security and Governmental Affairs, the 


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1 Committee on the Judiciary, the Committee on 

2 Banking, Housing, and Urban Affairs, and the Com3 mittee on Finance of the Senate. 

4 TITLE III—GENERAL 

5 PROVISIONS 

6 SEC. 301. REGULATORY AUTHORITY. 

7 (a) IN GENERAL.—The President shall, not later 

8 than 180 days after the date of the enactment of this Act, 

9 prescribe regulations as necessary for the implementation 

10 of this Act and the amendments made by this Act. 

11 (b) NOTIFICATION TO CONGRESS.—Not later than 10 

12 days before the prescription of regulations under sub13 section (a), the President shall notify the appropriate con14 gressional committees regarding the proposed regulations 

15 and the provisions of this Act and the amendments made 

16 by this Act that the regulations are implementing. 

17 (c) APPROPRIATE CONGRESSIONAL COMMITTEES DE18 FINED.—In this section, the term ‘‘appropriate congres19 sional committees’’ means— 

20 (1) the Committee on Foreign Affairs and the 

21 Committee on Financial Services of the House of 

22 Representatives; and 

23 (2) the Committee on Foreign Relations and 

24 the Committee on Banking, Housing, and Urban Af25 fairs of the Senate. 


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1 SEC. 302. EXCEPTIONS. 

2 (a) IN GENERAL.—This Act and the amendments 

3 made by this Act shall not apply to the following: 

4 (1) Any authorized intelligence, law enforce5 ment, or national security activities of the United 

6 States. 

7 (2) Any transaction necessary to comply with 

8 United States obligations under— 

9 (A) the Agreement between the United Na10 tions and the United States of America regard11 ing the Headquarters of the United Nations, 

12 signed at Lake Success June 26, 1947, and en13 tered into force November 21, 1947; 

14 (B) the Convention on Consular Relations, 

15 done at Vienna April 24, 1963, and entered 

16 into force March 19, 1967; or 

17 (C) any other international treaty. 

18 (b) EXCEPTION RELATING TO IMPORTATION OF

19 GOODS.—The authorities and requirements to impose 

20 sanctions under this Act and the amendments made by 


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1 this Act shall not include the authority or requirement to 

2 impose sanctions on the importation of goods. 

Passed the Senate October 5, 2017. 

Attest: JULIE E. ADAMS, 

Secretary. 


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